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Original Articles

Tax degression and the political budget cycle in French municipalities

Pages 905-908 | Published online: 22 Aug 2006
 

Abstract

This paper explores local incumbent behaviour during office. First, empirical evidence is given about the fiscal policy instruments by which French municipalities try to influence election outcome. Special care is taken about the econometric issues raised by the dynamic panel data setting. Secondly, a theoretical framework is built to investigate the political budget cycle when local taxation is degressive as in France. Its main results help understanding of the empirical findings.

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